15 December 2010

Temporary freezing orders

Hanover Finance confirms that it was advised by the Securities Commission on

Monday 13 December that the Commission had obtained without notice freezing
orders with respect to certain New Zealand assets it believed to be associated with
Hanover director Mark Hotchin.

A power to seek such orders was introduced into the Securities Act in October 2006.
Freezing orders have not been made against any other director or former director of
any member of the Hanover group.

Mr Hotchin is applying to revoke the orders, and a case management telephone

conference was held in chambers at the Auckland High Court this morning to discuss a
timetable for hearing the matter in February 2011.

Mr Hotchin has been advised by the Commission that it has not completed its
investigation, or made any determination on whether or not it intends to proceed with
civil or criminal action.

Although the Commission had previously advised the media that it intended to
complete its investigation before Christmas, Mr Hotchin was only provided with limited
details of the scope of the Commission’s investigation on 7 December. Accordingly Mr
Hotchin’s lawyers requested a more reasonable time for a response, and the
Commission has agreed to extend the timeframe for providing that until the end of
January 2011.

As the matter is before the Court, and the investigation is said to be incomplete,
Hanover and Mr Hotchin do not propose to make any further comment at this time.

ends

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